American Dairy Inc. (ADY, Financial) filed Quarterly Report for the period ended 2012-03-31.
Feihe Intl Inc has a market cap of $121.6 million; its shares were traded at around $6.72 with a P/E ratio of 17.5 and P/S ratio of 0.4.
The average selling price per kilogram of milk powder increased by 32.6% from $9.57 in the three month period ended March 31, 2011 to $12.69 in the three month period ended March 31, 2012. This increase was primarily attributable to increase in sales of high end milk powder.
Our total operating expenses consist primarily of sales and marketing expenses, and general and administrative expenses. Our total operating expenses increased by approximately $2.7 million, or 12.4%, from approximately $21.7 million in the three month period ended March 31, 2011 to approximately $24.4 million in the three month period ended March 31, 2012. This increase was primarily attributable to an increase of approximately $2.8 million, or 17.7%, in sales and marketing expenses from approximately $15.9 million for the three month period ended March 31, 2011 to approximately $18.8 million for the three month period ended March 31, 2012. The increased sales and marketing expenses primarily related to a increase in advertisement fees and transportation cost of our sales personnel, which was offset in part by an decrease in other sales and marketing expenses.
We are subject to U.S. federal and state income taxes, and our subsidiaries incorporated in the PRC are subject to enterprise income taxes in the PRC. We recorded an income tax expense of approximately $1.9 million and $1.3 million for the three months ended March 31, 2012 and 2011, respectively. The increase in income tax expense was primarily due to the increase in profits of Feihe Dairy, which is one of our major operations.
In August 2009, pursuant to a subscription agreement, we issued 2,100,000 shares of our common stock to Sequoia for an aggregate purchase price of $63.0 million. Because we did not meet certain earnings per share targets for 2009, we issued 525,000 additional shares to Sequoia pursuant to the subscription agreement. In February 2011, we entered into a redemption agreement with Sequoia to redeem and repurchase the 2,625,000 shares issued pursuant to the subscription agreement in four equal installments within 30 days of March 31, 2011, September 30, 2011, December 31, 2011 and March 31, 2012, for an aggregate payment on each such date of $15,750,000, together with interest accruing at the rate of 1.5% per annum, compounded annually from August 27, 2009 until such date. In April 2011, October 2011 and January 2012, we paid Sequoia approximately $16.1 million, $16.3 million and $16.3 million, respectively, to redeem an aggregate of 1,968,750 shares of common stock. The outstanding liability of redeemable common stock was $16,379,092 as of March 31, 2012. In April 2012, we paid the final installment of approximately $16.3 million to Sequoia, and all of the 2,625,000 shares have been redeemed. All shares of our common stock we redeem constitute authorized but unissued shares.
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Feihe Intl Inc has a market cap of $121.6 million; its shares were traded at around $6.72 with a P/E ratio of 17.5 and P/S ratio of 0.4.
Highlight of Business Operations:
Our sales consist primarily of revenues generated from sales of milk powder, raw milk powder, soybean powder, rice cereal, and walnut products. Sales decreased by approximately $4.7 million, or 7.0%, from approximately $67.7 million for the three month period ended March 31, 2011 to approximately $62.9 million for the three month period ended March 31, 2012. This decrease was primarily attributable to a decrease in sales of raw milk powder of approximately $15.2 million and a decrease in sales of soybean powder of approximately $1.5 million, offset by an increase in sales of milk powder of approximately $11.5 million. This reflects our strategy to boost sales of high end milk powder products.The average selling price per kilogram of milk powder increased by 32.6% from $9.57 in the three month period ended March 31, 2011 to $12.69 in the three month period ended March 31, 2012. This increase was primarily attributable to increase in sales of high end milk powder.
Our total operating expenses consist primarily of sales and marketing expenses, and general and administrative expenses. Our total operating expenses increased by approximately $2.7 million, or 12.4%, from approximately $21.7 million in the three month period ended March 31, 2011 to approximately $24.4 million in the three month period ended March 31, 2012. This increase was primarily attributable to an increase of approximately $2.8 million, or 17.7%, in sales and marketing expenses from approximately $15.9 million for the three month period ended March 31, 2011 to approximately $18.8 million for the three month period ended March 31, 2012. The increased sales and marketing expenses primarily related to a increase in advertisement fees and transportation cost of our sales personnel, which was offset in part by an decrease in other sales and marketing expenses.
We are subject to U.S. federal and state income taxes, and our subsidiaries incorporated in the PRC are subject to enterprise income taxes in the PRC. We recorded an income tax expense of approximately $1.9 million and $1.3 million for the three months ended March 31, 2012 and 2011, respectively. The increase in income tax expense was primarily due to the increase in profits of Feihe Dairy, which is one of our major operations.
In August 2009, pursuant to a subscription agreement, we issued 2,100,000 shares of our common stock to Sequoia for an aggregate purchase price of $63.0 million. Because we did not meet certain earnings per share targets for 2009, we issued 525,000 additional shares to Sequoia pursuant to the subscription agreement. In February 2011, we entered into a redemption agreement with Sequoia to redeem and repurchase the 2,625,000 shares issued pursuant to the subscription agreement in four equal installments within 30 days of March 31, 2011, September 30, 2011, December 31, 2011 and March 31, 2012, for an aggregate payment on each such date of $15,750,000, together with interest accruing at the rate of 1.5% per annum, compounded annually from August 27, 2009 until such date. In April 2011, October 2011 and January 2012, we paid Sequoia approximately $16.1 million, $16.3 million and $16.3 million, respectively, to redeem an aggregate of 1,968,750 shares of common stock. The outstanding liability of redeemable common stock was $16,379,092 as of March 31, 2012. In April 2012, we paid the final installment of approximately $16.3 million to Sequoia, and all of the 2,625,000 shares have been redeemed. All shares of our common stock we redeem constitute authorized but unissued shares.
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